Question : 31) One of the possible roles governments can play in : 1240975

31) One of the possible roles governments can play in sponsoring growth is to

A) provide tax incentives to encourage saving.

B) own more of the nation’s resources in order to put them to use.

C) close the nation to trade in order to protect its domestic producers.

D) make decisions for its citizens as to the most suitable job.

E) limit the use of property rights in order to decrease the harm they create.

32) Many economists argue that an incentive to save is

A) high income tax rates.

B) a tax on consumption rather than on income.

C) a tax on income rather than a tax on consumption.

D) greater government regulation of the banking and securities industries.

E) strengthening the property rights that savers have to the physical capital they purchase.

33) One possible way of achieving faster economic growth is to

A) abolish the system of patents and copyrights so that everyone can use people’s ideas.

B) limit international trade to only a few countries so that the nation is not hurt by too much trade.

C) encourage research and development.

D) limit schooling in order to have more people in the labor force, producing goods and services.

E) promote tax saving so that people spend more and businesses’ profits are larger.

34) One possible way of achieving faster economic growth is to

A) limit international trade.

B) encourage international trade.

C) limit research and development and concentrate on production of goods and services.

D) abolish the system of patents and copyrights so that everyone can use people’s ideas.

E) let the government decide what research and development should be undertaken.

35) Encouraging international trade will

A) slow economic growth when a country is forced to specialize and trade with other countries.

B) slow economic growth as many workers lose their jobs to foreign workers.

C) speed economic growth as workers diversify their knowledge and limit trade.

D) speed economic growth as workers specialize and trade with others.

E) speed economic growth because international trade limits the harm done by property rights.

36) The fastest growing nations today

A) are not saving but instead are investing.

B) have erected many trade barriers to protect domestic firms.

C) have the fastest growing exports and imports.

D) have non-democratic political systems.

E) have the government directing all their research and development.

37) China’s growth rate has ________ that of most other countries, ________.

A) topped; but its real GDP per person is still lower than other industrialized countries

B) lagged behind; and its real GDP is close to other Asian economies

C) lagged behind; but its real GDP per person is higher than other Asian economies

D) topped: but its real GDP per person declined in 2008-09

E) equalled; and its real GDP per person declined in 2008-09

38) Governments should promote education because education contributes to the nation’s

A) employment.

B) free markets.

C) economic growth potential.

D) international trade.

E) protection of property rights.

39) Brian is running for state senator and if elected, pledges to improve economic growth. His plan for economic growth includes increasing spending on public education and providing tax incentives to encourage improved private education. His plan is likely to

A) slow economic growth because it includes a provision for private education.

B) have no effect on economic growth because property rights are not changed.

C) speed economic growth as the quality of resources improve.

D) fail because the provision for private education limits government involvement in education.

E) have no effect on economic growth because government spending cannot affect the economic growth rate.

40) If Kenya institutes policies that support economic freedom and growth, it is likely that Kenya will

A) immediately reap the benefits of double digit increase in economic growth.

B) immediately reap the benefits of a 4 percent to 6 percent increase in economic growth.

C) slowly reap the benefits of economic growth as the economy grows over time.

D) lose control of the economy and plunge into a long recession.

E) suffer from too much competition within its economy.